Debt

Debt with a contractual term less than one year is generally classified as short-term debt and consisted of the following as of December 31 (in thousands):



	2018		2017
Unsecured commercial paper	$	1,135,810	$	1,273,482
Total short-term debt	$	1,135,810	$	1,273,482

Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following as of December 31 (in thousands):



	2018			2017
Secured debt (Note 12)
Asset-backed Canadian commercial paper conduit facility	$	155,951		$	174,779
Asset-backed U.S. commercial paper conduit facilities	582,717			279,457
Asset-backed securitization debt	95,216			353,085
Less: unamortized discount and debt issuance costs	(49		)	(461		)
Total secured debt	833,835			806,860

Unsecured notes (at par value)
6.80% Medium-term notes due in 2018, issued May 2008	—			877,488
2.25% Medium-term notes due in 2019, issued January 2016	600,000			600,000
Floating-rate Medium-term notes due in 2019, issued March 2017^(a)	150,000			150,000
2.40% Medium-term notes due in 2019, issued September 2014	600,000			600,000
2.15% Medium-term notes due in 2020, issued February 2015	600,000			600,000
Floating-rate Medium-term notes due in 2020, issued May 2018^(b)	450,000			—
2.40% Medium-term notes due in 2020, issued March 2017	350,000			350,000
2.85% Medium-term notes due in 2021, issued January 2016	600,000			600,000
Floating-rate Medium-term notes due in 2021, issued November 2018^(c)	450,000			—
3.55% Medium-term notes due in 2021, issued May 2018	350,000			—
2.55% Medium-term notes due in 2022, issued June 2017	400,000			400,000
3.35% Medium-term notes due in 2023, issued February 2018	350,000			—
3.50% Senior unsecured notes due in 2025, issued July 2015	450,000			450,000
4.625% Senior unsecured notes due in 2045, issued July 2015	300,000			300,000
Less: unamortized discount and debt issuance costs	(20,369		)	(19,821		)
Gross long-term debt	6,463,466			5,714,527
Less: current portion of long-term debt, net of unamortized discount and debt issuance costs	(1,575,799		)	(1,127,269		)
Total long-term debt	$	4,887,667		$	4,587,258


(a)	Floating interest rate based on LIBOR plus 35 bps.


(b)	Floating interest rate based on LIBOR plus 50 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.


(c)	Floating interest rate based on LIBOR plus 94 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.

A summary of the Company’s expected principal payments for debt obligations as of December 31, 2018 is as follows (in thousands):



2019	$	2,717,597
2020	1,562,889
2021	1,570,815
2022	578,256
2023	440,137
Thereafter	750,000
Total	$	7,619,694

Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of outstanding commercial paper balances was 2.79% and 1.48% at December 31, 2018 and 2017, respectively.

In April 2018, the Company entered into a $780.0 million five-year credit facility to replace the $675.0 million five-year credit facility that was due to mature in April 2019 and also terminated the $100.0 million 364-day credit facility that would have matured at the end of April 2018. The new five-year credit facility matures in April 2023. The Company also has a $765.0 million five-year credit facility which matures in April 2021. The two five-year credit facilities (together, the Global Credit Facilities) bear interest at variable rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based on the average daily unused portion of the aggregate commitments under the Global Credit Facilities. The Global Credit Facilities are committed facilities primarily used to support the Company's unsecured commercial paper program. In May 2018, the Company renewed its $25.0 million 364-day credit facility that was due to mature in that month. The $25.0 million credit facility bears interest at variable interest rates, and the Company pays a fee based on the unused portion of the $25.0 million commitment. This credit facility matures in May 2019.

The fixed-rate Notes provide for semi-annual interest payments and the floating-rate Notes provide for quarterly interest payments. Principal on the Notes is due at maturity.

During June 2018, $877.5 million of 6.80% medium-term notes matured, and the principal and accrued interest were paid in full. During March and November 2017, $400.0 million of 2.70% and $400.0 million of 1.55% medium-term notes matured, respectively, and the principal and accrued interest were paid in full.

HDFS and the Company are subject to various operating and financial covenants related to the credit facilities and various operating covenants under the Notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below.

The operating covenants limit the Company’s and HDFS’ ability to:


•	Assume or incur certain liens;


•	Participate in certain mergers or consolidations; and


•	Purchase or hold margin stock.

Under the current financial covenants of the Global Credit Facilities, the ratio of HDFS's consolidated debt, excluding secured debt, to HDFS's consolidated shareholders' equity, excluding accumulated other comprehensive income (loss), cannot exceed 10.0 to 1.0 as of the end of any fiscal quarter. In addition, the ratio of the Company's consolidated debt to the Company's consolidated debt and consolidated shareholders’ equity (where the Company's consolidated debt in each case excludes that of HDFS and its subsidiaries, and the Company's consolidated shareholders’ equity excludes accumulated other comprehensive income (loss)), cannot exceed 0.7 to 1.0 as of the end of any fiscal quarter. No financial covenants are required under the Notes or the U.S. or Canadian asset-backed commercial paper conduit facilities.

At December 31, 2018 and 2017, HDFS and the Company remained in compliance with all of these covenants.